New Delhi: The Centre and RBI Tuesday told the Supreme Court that the moratorium period on repayment of loans amid the COVID-19 pandemic is “extendable” by two years.

Solicitor General Tushar Mehta, appearing for the Centre and the Reserve Bank of India (RBI), told a bench headed by Justice Ashok Bhushan that several steps have been taken for stressed sectors and the economy has contracted by 23 percent due to the pandemic.

The bench said that it would hear on Wednesday the pleas which have raised the issue of interest being charged on installments which have been deferred under the central bank''s scheme during the moratorium period amid the COVID-19 lockdown.

The apex court had earlier asked the Centre and the RBI to review the move to charge interest on deferred EMIs during the moratorium period.